KARACHI, May 3: The federal government has decided to increase subsidy on DAP fertiliser to support farmers in view of abnormal rise in its prices in the world market.

Sindh Agriculture Secretary Subhago Khan Jatoi told Dawn in his office on Friday that the new rate of subsidy would be decided by the Economic Coordination Committee (ECC) of the Cabinet. The existing rate of subsidy is Rs470 per 50 kg bag.

He said that during the last wheat cultivation season the DAP prices jumped to Rs2,800 per 50kg bag, which are likely to further rise to Rs4,000 per bag during this season.

Earlier the growers had reported that they had used 60pc less DAP for wheat crop, which affected per acre yield. The fertiliser would also be required for the forthcoming cotton crop which is facing acute water shortage.

The Sindh Abadgar Board (SAB) has suggested that the government should charge Rs1,000 from the farmer on each bag of DAP and the rest should be paid by it.

SAB President Abdul Majid Nizamani told Dawn from Hyderabad that in India farmers pay only Rs944 for a bag of DAP and the rest is paid by the government.

He said that the total crop area in the country is about 50 million acres, of which wheat is sown on 20m acres, cotton on 7.7m acres, rice on 5.5 million acres and sugarcane on 2.7 million acres.

With the new rate of subsidy suggested by the board the yield of wheat would increase by 6 million tons. The government could earn $3,000 million on export of this extra wheat at the rate of $500 per ton, he said.

Meanwhile, Sindh Minister for Agriculture Ali Nawaz Shah has stressed the need for early completion of farm development schemes, included in the Annual Development Plan. These schemes aimed at raising the crops output through availability of quality seeds, modern irrigation schemes and optimum use of fertiliser.

The minister further directed the officials to support small farm projects involving women in livestock breeding, dairy products, food preservation, and projects for manufacturing tinned fruits and vegetables. Presently, women are mainly employed in harvesting of different crops such as wheat, cotton, and rice.

The ministry has introduced a house job scheme for postgraduates in agriculture to impart them one year practical experience of farming. The postgraduates willing to serve in fields are paid Rs10,000 stipend per month. About 24 postgraduates are presently employed under the scheme.

The ministry is also working on a project to construct 6,000 water courses to improve water supply to the farm situated at tail end of the water supply. About 11,000 water courses have already been constructed.

It is also helping farmers to install drip irrigation system and sprinklers to conserve precious water resources.